Approval given for ABM/Northgate deal

Toronto-based Northgate Exploration (TSE) has completed a transaction to acquire all of the shares of ABM Mining Group, a Vancouver holding company.

The transaction gives Northgate 45% of the equity and 88% of the voting shares of ABM Mining subsidiary ABM Gold. Listed for trading on the American and Pacific stock exchanges, ABM Gold has varying interests in a number of North American companies including a 32.5% stake in Sonora Gold Corp. (TSE) and a 15% net operating profits interest in Sonora’s Jamestown mine in California.

ABM Gold also has a 58.4% interest in Goldenbell Resources (TSE) which owns the Pine Tree Josephine property in California, a 59.9% interest in United Gold Corp. (VSE) and 20.5% of Inca Resources (TSE).

In other news, Northgate has been given the green light for a private placement of four million Sonora shares at $3.10 per share. — 30 — File: K:NOVAGOLD xknovag-p.k. NovaGold Resources Aug 23 General news Should go Alternative funding sought as NovaGold offering fails

Nova Scotia-based NovaGold Resources (TSE) has come up against a major stumbling block in its bid to bring the Murray Brook gold deposit int o production by year end.

A public offering designed to raise between $2 and $12 million for exploration at the Murray Brook project has been withdrawn by agent Levesque Beaubien Inc.

A feasibility study tabled by Kilborn Ltd. of Toronto says the deposit contains 1.7 million tons of mineable ore reserves grading 0.037 oz gold per ton and 1.49 oz silver.

NovaGold President Gerald McConnell blamed the prevailing financial climate and a drop in the company’s share price from $2.40 to around $2 for the failed offering. It was trading recently on the Toronto Stock Exchange at $1.99 in a 52-week range of $7.63 and $1.80.

“We are currently involved in discussions with several major mining companies involving possible joint ventures on some of our properties, said McConnell. Possible private placements are also being considered.

According to McConnell, the flow-through part of the issue was earmarked for the Murray Brook deposit while the equity portion was going to be used to develop the Summit property in New Mexico.

Located in New Mexico’s Steeple Rock mining district, the Summit property was recently the subject of a 15-hole, 15,000 ft drill program which produced some encouraging results.

Highlights of the program include 80.3 ft of grade 0.094 oz gold and 3.13 oz silver in hole S88-2, 60.4 ft of 0.145 oz gold and 16.80 oz silver in hole S88-9 and, and 47 ft of 0.073 oz gold and 5.04 oz silver in hole S88-15.

Holes in which the best intersection were reported, are located 500 ft to 900 ft below the existing drift with hole S88-2 550 ft northwest of S88-9 and S88-15 located 650 northwest of S88-2.

With additional financing in place, NovaGold’s wholly-owned subsidiary, NovaGold Resources Nevada will conduct closer spaced drilling to establish continuity of intersections. If successful, the program may allow NovaGold to make an initial reserve estimate.